AUGUSTE TANO KOUAME Country Director, India South Asia Region July 29, 2024 Ms. Juhi Mukherjee Controller of Aid Accounts and Audit Department of Economic Affairs, Ministry of Finance Government of India B-Wing, 5th Floor Janpath Bhawan New Delhi, India 110001 Re: IBRD Loan 9324-IN (Additional Financing Karnataka Urban Water Supply Modernization Project) Additional Instructions: Disbursement and Financial Information Letter Ms. Juhi Mukherjee, I refer to the Loan Agreement between India (the “Borrower”) and the International Bank for Reconstruction and Development (the “World Bank”) for the Additional Financing Karnataka Urban Water Supply Modernization Project, loan 9324-IN. The General Conditions, as defined in the Loan Agreement, provide that the Borrower may from time to time request withdrawals of Loan Amounts from the Loan Account in accordance with the Disbursement and Financial Information Letter (DFIL), including Project specific financial reporting requirements. I. Disbursement Arrangements, Withdrawal of Loan Funds, and Reporting of Uses of Loan Funds The Disbursement Guidelines for Investment Project Financing, dated February 2017, (“Disbursement Guidelines”) are available in the Bank’s public website at https://www.worldbank.org and its secure website “Client Connection” at https://clientconnection.worldbank.org. The Disbursement Guidelines are an integral part of the DFIL, and the manner in which the provisions in the Disbursement Guidelines apply to the Loan is specified below. (i) Disbursement Arrangements/Provisions. The below Schedule 1 sets out the disbursement methods which may be used by the Borrower, information on registration of authorized signatures, processing of withdrawal applications, including minimum value of applications, and instructions on supporting documentation. (ii) Electronic Delivery (Section 10.01 (c) of the General Conditions) The World Bank may permit the Borrower to electronically deliver applications (with supporting documents) through the World Bank’s web-based portal “Client Connection”. This option may be effected if the officials designated in writing by the Borrower who are authorized to sign and deliver Applications have registered as users of “Client Connection”. The designated officials may deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. By signing the Authorized Signatory Letter, the Borrower confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. The Borrower may continue to exercise the option of preparing and delivering Applications in paper form. The World Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Borrower confirms through the authorized signatory letter its agreement to: (a) abide by the Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, available in the World Bank's public website at https://worldbank.org and “Client Connection”; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits (i) Financial Reports. The Borrower must prepare and furnish to the World Bank not later than sixty (60) days after the end of each calendar quarter, interim unaudited financial reports (“IUFR”) for the Project covering the quarter. (ii) Audits. Each audit of the Financial Statements must cover the period of one fiscal year of the Borrower, commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements for each such period must be furnished to the Bank not later than nine (9) months after the end of such period. III. Other Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the World Bank’s website (http://www.worldbank.org/) and “Client Connection”. The World Bank recommends that you register as a user of “Client Connection”. From this website you will be able to prepare and deliver Applications, monitor the near real-time status of the Grant, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, or if you have any queries in relation to the above, please contact the World Bank by email at AskLoans@WorldBank.org using the reference IBRD Loan No. 9324-IN (Additional Financing Karnataka Urban Water Supply Modernization Project). Yours sincerely, ______________________________ Nataliya Kulichenko Acting Country Director India Attachments 1. Form of Authorized Signatory Letter 2. Interim unaudited Financial Report (IUFR) Schedule 1 : Disbursement Provisions Basic Information Country India Closing Date Section III.B.2 of Schedule 2 to the Borrower/Beneficiary India (DEA/CAAA) Loan Agreement. Loan 9324-IN Name of the Project Additional Financing Karnataka Urban Disbursement Four months after the closing date. Number Water Supply Modernization Project Deadline Date Subsection 3.7 ** Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment No Not Applicable Reimbursement Yes Interim unaudited Financial Report (IUFR) in the format provided in Attachment 2 of the DFIL Designated Account No Not Applicable Special Commitments No Not Applicable Designated Account (Sections 5 and 6 **) Not Applicable Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement is USD 2,000,000 equivalent Authorized Signatures (Subsection 3.1 and 3.2 **) The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) Authorized Signatories Letter (ASL). The ASL will be sent to the following address: The World Bank No. 11, Taramani Main Road Taramani, Chennai – 600 113, India Attention: WFACS Unit. Additional Instructions ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing ”, dated February 2017. Attachment 1 – Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Junaid Kamal Ahmad, Country Director Re: Loan No. 9324-IN (Additional Financing Karnataka Urban Water Supply Modernization Project) I refer to the Loan Agreement (“Agreement”) between India (the “Borrower”) and the International Bank for Reconstruction and Development (the “Bank”), dated _______, providing the above Loan. For the purposes of Section 2.02 of the General Conditions as defined in the Agreement, any 1[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Borrower to sign applications for withdrawal [and applications for a special commitment] under this Loan. For the purpose of delivering Applications to the Bank, including by electronic means, 2[each]of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Borrower, acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Bank. This Authorization replaces and supersedes any Authorization currently in the Bank records with respect to this Agreement. 1 Instruction to the Borrower: stipulate if more than one person needs to sign Applications, and how many or which positions, and if any thresholds apply. Please delete this footnote in final letter that is sent to the Bank. 2 Instruction to the Borrower: stipulate if more than one person needs to jointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the Bank. 3 Instruction to the Borrower: use this bracket if any one of the authorized persons may sign; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Bank. 4 Instruction to the Borrower: use this bracket only if several individuals must jointly sign each Application; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Bank. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ [Position] Attachment 2– Interim Unaudited Financial Report (IUFR) KUWSMP - AF Internal Unaudited Financial Report for the quarter ended ______ (Rs. in Million) To be Reimb. Reimb Expenditure by Categories Expenditure reimbursed % amount from ULB/State Current Qtr IBRD Share 1 2 3= 1x 2 4 6 (1)Works for Part A.1. of the Project (Hubbali Dharwad) 0 75% 0 0 0 (2) Works for Part A.2. of the Project (Belagavi) 75% (3) Works for Part A.3. of the Project (Kalaburagi) 75% (4) Operator Fees 50% (5) Goods, non-consulting services, and consulting services, Incremental Operating Costs and Training for Part B, C, and D of the Project 20% (6) Goods, Consultancy, non- Consultancy Incremental Operating Costs and Training for Part A.1 (3),A 2 (3), and A.3 (3)of the Project 100% TOTAL PROJECT EXPENDITURE 0 0 0 0 Finance Manager Project Director Date: Date: KUWSMP - AF Internal Unaudited Financial Report for the quarter ended ______ (Rs. in Million) Begnining of For the For the Expenditure by Categories Cummulative the quarter Quarter FY Component 1 0 0 0 0 Component 2 0 0 0 0 Component 3 0 0 0 0 Component 4 0 0 0 0 TOTAL PROJECT EXPENDITURE 0 0 0 0 Finance Manager Project Director Date: Date: KUWSMP - AF Date Period IUFR No. Expenditure reported Claims requested Claims received RF/WF No. Finance Manager Project Director Date: Date: KUWSMP - AF Internal Unaudited Financial Report for the quarter ended ______ Contract Original Revised Payment vs. Division Number/ Payment till Payment in Total amount Supplier Contract Date Contract contract contract Name Work order last quarter this quarter paid till date Amount amount percentage no. - - - - - - - - - - - - - - Finance Manager Project Director Date: Date: FOR OFFICIAL USE ONLY V. Ordonez, WFACS Cleared with and cc: A. Rohde, SSAW1 V. Venugopal, LEGES Cc: S. Krishnamurthy, ESAG1